President Donald Trump has announced a new policy proposal that would see every American child born receive a $1,000 investment account from the federal government.
This initiative would provide every American child born between January 1, 2025, and December 31, 2028, with a $1,000 tax-deferred investment account that is funded by the federal government.
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The bill aims to foster long-term wealth creation by tying the accounts to the performance of the U.S. stock market. Guardians will manage the accounts until the child reaches adulthood.
Speaking at a White House roundtable with prominent CEOs, Trump emphasized the transformative potential of the program.
“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” Trump stated, as reported by The Guardian.
He further described the initiative as a cornerstone of his second term, calling it part of “the big beautiful bill” that he claims is “among the most important pieces of legislation in our country’s history.”
The accounts, previously referred to as “Money Accounts for Growth and Advancement” (MAGA Accounts), would allow parents or custodians to contribute up to $5,000 annually in post-tax funds, with investments directed into low-cost index funds tracking the broader U.S. stock market.
The Treasury Department will fund the initial $1,000 seed money, and newborns will be automatically enrolled in the program.